In recent years, rising electricity and energy prices combined with the global and South African economic downturn have impacted on the plant's competitiveness, while at the same time AreclorMittal’s foreign competitors have not generally experienced the same degree of energy price increase. Therefore, it has been critical for the plant to achieve significant reductions in its production energy intensity in a short period of time to effectively defend its market position in Africa and ensure long-term commercial viability.
By implementing an Energy Management System, ArecelorMittal Saldanha Works has saved roughly R90 million within the 2011 period, against a minimal capital investment of R500,000.
The company was able to offset this investment in less than four production days.
By the end of June 2013, the value of energy savings had reached R176 million.
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